問題一覧
1
Aggregate demand shifts right if at a given price level:
Taxes fall and shifts right if the money supply increases
2
Sandy, a Canadian citizen, purchases oranges grown in Florida. This purchase is an example of:
A U.S. export and a Canadian import.
3
When interest rates fall:
Firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding
4
The long-run aggregate supply curve shifts right if:
The capital stock increases
5
Other things the same, continued increases in the money supply lead to:
Continued increases in the price level but not continued increases in real GDP
6
If the required reserve ratio decreases,the
money multiplier increases
7
If expected inflation is constant and the nominal interest rate decreases by 2 percentage points, then the real interest rate:
Decreases by 2 percentage points
8
The model of aggregate demand and aggregate supply explains the relationship between:
Real GDP and the price level
9
The Federal Deposit Insurance Corporation (FDIC):
Protects depositors in the event of bank failure
10
Inflation can be measured by the
Percentage change in the consumer price index.
11
A European recession that reduces U.S. net exports by $50 billion may ultimately lead to _____a billion reduction in aggregate demand if the MPC is 0.75:
$200 billion
12
If the multiplier is 2.5, then the MPC is:
0.60
13
The effect of an increase in the price level on the aggregate demand curve is represented by:
A movement to the left along a given aggregate demand curve
14
If the reserve ratio is 6 percent, then 9,000 of additional reserves can create up to
$150,000 of new money
15
Which of the following is both a store of value and regularly used as a medium of exchange?
cash but not stocks
16
If Saudi Arabia had negative net exports last year, then it:
Bought more abroad than it sold abroad and had a trade deficit.
17
A bank which must hold 100 percent reserves opens in an economy that had no banks and a currency of $150. If customers deposit $50 into the bank, what is the value of the money supply?
$150
18
Suppose the government raises taxes. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?
The ageregate demand curve would shift left
19
If the price level falls, the real value of a dollar:
Rises, so people will want to buy more
20
Other things the same, what happens in the short run to the price level and quantity of output when the apgregate demand curve shifts to the left?
The price level decreases and output decreases
21
As the price level decreases, the value of money:
Increases, so people must hold less money to purchase goods and services
22
With the value of money on the vertical axis, the money supply curve is:
Vertical
23
If inflation is higher than what was expected
creditors receive a lower real interest rate than they had anticipated
24
When inflation causes relative-price variability:
Consumer decisions are distorted and the ability of markets to efficiently allocate factors of production is impaired.
25
If the price level last year was 180 and this year it is 176, then:
There was a deflation of 2.2 percent.
26
When the money supply increases:
Interest rates fall and so aggregate demand shifts right
27
Which of the following will both make people buy more?
Wealth rises and interest rates fall
28
When production costs rise:
The short-run aggregate supply curve shifts to the left
29
The value of the goods and services Australia purchases from the U.S. are less than the value of goods and services the U.S. purchases from Australia. The U.S. has
Negative net exports with Australia and a trade deficit with Australia
30
Most economists believe that in the long run, changes in the money supply:
Affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory
31
Monetary policy is determined by:
The Federal Reserve and involves changing the money supply
32
During a recession the economy experiences:
Falling employment and income
33
Why the aggregate demand slopes dowmward? Explain your answer with reference to the three effects that result from a price change
1) Wealth effect : when price rise , wealth decreases people buy fewer goods and services C decreases and Y decreases 2) Interest rate effect supply of loanable funds shifts to the left, Intrest rate increases I and Y decreases 3) Exchange rate effect exchange rate increase while export decreases and imports increase causes NX to fall
34
If U.S. exports are $300 billion and U.S. imports total $350 billion, which of the following is correct:
The U.S. has a trade deficit of $50 billion.
35
Most financial assets other than money function as
a store of value, but not a unit of account nor a medium of exchange.
36
When the dollar depreciates, U.S.:
Net exports rise, which increases the aggregate quantity of goods and services demanded
37
A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can given the reserve requirement
$800 in reserves and $9,200 in loans
38
If businesses and consumers become pessimistic, the Federal Reserve can attempt to reduce the impact on the price level and real GDP by:
Increasing the money supply, which lowers interest rates
39
In the mid-1970s, the price of oil rose dramatically. This:
Shifted aggregate supply left, the price level rose, and real GDP fell
40
"When conducting an open-market purchase, the Central Bank Select one:
buys government bonds, and in so doing increases the money supply
41
People will want to hold more money if the price level:
Increases or if the interest rate decreases
42
If saving is greater than domestic investment, then:
There is a trade surplus and Y > C + I + G.
43
A U.S. citizen buys bonds issued by a construction equipment manufacturer in Poland. Her expenditures are:
U.S. foreign portfolio investment that increases U.S. net capital outflow.
44
A recession with inflation is known by what term?
Stagflation
45
The additional shifts in aggregate demand that result when there is an increase in government spending is known as the:
Multiplier effect